1. IMO Goal Based New Construction Standards Seminar in Heraklion 17 October 2005 Dragos Rauta INTERTANKO

2. INTERTANKO Involvement INTERTANKO Position Paper in 1999 Joint paper with OCIMF in 2000 Discussions with individual Classification Societies & IACS in 2000 - 2002 Tripartite initiative since 2001 (Singapore, Shanghai, Seoul, Yokohama, Beijing) Although GBS would apply to all ships, INTERTANKO speaks on behalf of tanker operators Tanker - the most targeted ship type followed by bulkers Everyone expects perfection Tanker safety records is extremely good but Zero tolerance is the rule of the game

3. Tanker incidents and age development Source:LMIS/Informa/INTERTANKO %

4. Tanker pollution and age development Source:LMIS/Informa/INTERTANKO 000 ts Years

5. ZERO TOLERANCEZERO TOLERANCE TANKERS

6. GBS Basic Principles – INTERTANKO view Background –should industry alone have dealt with this? Absolutely YES but.. –did IMO need to get involved? Too late to ask isnt it? What is intended on this regulatory project? Ships are to be designed and constructed for a specified design life to be safe and environmentally friendly, when properly operated and maintained under the specified operating and environmental conditions, in intact and specified damage conditions, throughout their life.... specified operating and environmental conditions are defined by the operating area for the ship throughout its life and cover the conditions, including intermediate conditions, arising from cargo and ballast operations in port, waterways and at sea. Source: draft Tier I - Goals

7. GBS Basic Principles – INTERTANKO view Is the goal too ambitious or is it achievable? –What should GBS cover design (Class rules & design approval) construction standards survey of ship building (system for feedback reporting to ship yard after delivery) –What should GBS not address POLITICS ships in service (perhaps in phase II of the project)

8. TANKERS PRIMARY TARGET FOR PORT STATE CONTROL SIGNIFICANT LESS DEFICIENCIES THAN ALL OTHER COMMERCIAL SHIPS

9. GBS Basic Principles – INTERTANKO view Sufficient rules for monitoring ship in service Poor monitoring for new building Problems and errors on new buildings are primarily due to lack of rule/standard implementation rather than unknown stressess and efforts on the ships strucutre (e.g. minimising corrosion allowances although it has been prooved corrosion could be higher than assumed) Many problems with onboard equipment Equipment built according to unclear regulations deterministic vs. risk based approach?

10. Structural damages in SH VLCCs Class NK: Comprehensive damage review of 2nd generation of VLCCs, Dec. 1998

11. Structural damages in SH VLCCs Class NK: Comprehensive damage review of 2nd generation of VLCCs, Dec. 1998

12. Experience with structural defects on DH tankers Age profile Source: JTP – Structural Defects Experience

13. DH tankers - Age profile Source: JTP – Structural Defects Experience

14. Source: Class NK – Summary of hull damage incidents in 2004 Damages in cargo areas of large bulk carriers

15. DEFECTS ON RUDDER FOUND FEW MONTHS AFTER SHIP DELIVERY Defects in large castings

16. FILLINGS IN A NEW PROPELLER found 6 months after ship delivery Defects in large castings

17. DEFECTS IN WINDLASSES

18. sub-dimensioned very poor execution

19. Tier III Verification – INTERTANKO view The essential Tier of the GBS What should be verifiable –Class rules –Relevant IMO Regulations –Relevant Industy standards Who should be the Verification Authority –An Independent IACS body How to verify –Guidelines developed by an IMO Group of Experts How to monitor verification –Audit by the IMO Group of Experts IMO Group of Experts – professional expertise to be required

20. ships should be designed according to common regulations ship designs should be based on similar principles improve further CSR stop compete on producing the less costly design

21. Tanker fleet development m dwt

22. Tanker fleet double-hull development Source: Fearnleys/INTERTANKO %

23. GBS Enforcement – INTERTANKO view zero tolerance on tanker incidents INTERTANKO enviseages its new goals: –Zero deaths and serious injuries –Zero oil and chemicals entering the sea –Zero worldwide detentions

24. GBS Basic Principles – INTERTANKO view Operators cannot do this alone What it takes to get a sound result? Commitment required from: –Owners –Flag Administrations –Class Societies/ROs –IACS –Ship builders Somebody has to take the responsibility that the ship delivered is up to standards needed to meet zero tolerance expectations Statments but it is up to the owner are not acceptable

25. Goal Based Standards - Conclusions The SYSTEM should close loopholes on choices for substandard design/construction even if accepted by those buying new ships Key word: assuming responsibility The industry cannot miss the opportunity and leave politics and group interests to dominate these developments Any delay will only harm the industry Regulators have given priority for new regulations for tankers in service Same priority should be given to develop standards for design and construction monitoring of these ships